I have been undertaking a review of the movement in house prices this week, as recent offers we’ve taken, and sales we’ve agreed within the LS6 postcode area, are increasing continually.

Overall, property prices with the LS6 postcode area have seen 11% growth in the past 12 months, compared to the national average of 3%. An element of this is a consequence of less properties being available, with only 490 sales having taken place in the past 12 months in LS6. This is down by 25% on the previous 12 months. Nationally, sales are down, but only by 3.2%, 11% growth is well ahead of inflation (2.5% in July 2018 according to the ONS) and with 23% growth over the past 5 years, LS6 has proven to be a good investment – whether you bought for renting or you purchased a family home.

Statistically, the average price across the 490 sales was £192,462. 21% of the sales were flats, 43% terrace houses (large and small), 29% semi-detached and the remaining 7% were detached. The average price paid for a semi in LS6 was £228,403, which is higher than the average for the UK as a whole at £211,391. Terrace housing is also above the national average at £184,279, compared to £177,449. Detached and flats are selling at below the national average at £324,706 (£343,675) and £137,230 (£214,554) respectively.

Drilling down further in to the figures revealed some very interesting variances however. The LS6 2 postcode area e.g. Headingley Hill, and the area north of Headingley Lane leading up to Woodhouse Ridge, saw a 45% drop in the number of sales year on year (down to only 90 sales in the last 12 months), yet demand drove prices up by an average of 22% in the last 12 months. This is in sharp contrast to the performance of prices around North Lane and Kirkstall Lane in Headingley, where prices have only just out-performed the national average, seeing 4% growth. That said, prices in this area have done slightly better over the past 5 years, seeing 29% growth in total.

The LS6 4 postcode area saw 5% growth in the past year, and with 165 sales it was the busiest of all the Leeds 6 postcode areas. This area saw an 18% reduction in transactional volumes compared to the previous year. I don’t think the slightly-above-inflation growth reflects any sort of decline in popularity; Meanwood and its bordering streets and roads saw significant growth in the couple of years following the opening of Waitrose, with prices now beginning to settle down.

LS6 1 had the second highest number of sale transactions in Leeds 6 in the 12 month period (142) with property values rising by 11%. This postcode includes Hyde Park, the Richmond’s, Brudenell Road, etc. with property sales dominated by student HMO’s and Buy-to-Let’s; 65% of the sales were terrace houses and 27% were flats. Average values in this area are well above the Yorkshire and Humberside averages, with terrace house values averaging £162,846 (£115,268 in Yorkshire and Humberside region) and flats averaging £175,216 (£113,343 Yorkshire and Humberside). Despite Government’s changes to the tax structure of rental investments, such properties remain popular. Net income after tax may be less yet the net yield will outperform most other types of investment and capital growth adds the ‘icing to the cake’.

The variety of property in Leeds 6 probably contributes to its continuing popularity and the relatively fixed stock of property within the area, combined with an ever-increasing population in Leeds, is likely to see property values continue to rise.